Not only that, but a higher win rate may incentivize banks to conduct greater due diligence before filing a chargeback in the future. Customer Dispute. Visa Chargeback Reason Codes. For example, suppose a cardholder filed a case about an order processing issue, and you disputed the chargeback. Chargeback Reason Codes. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Here are some chargeback reason codes by card type. 83: Card Absent Fraud:. REQUEST A DEMO. 51% anticipate spending between $50 and $100 on gift cards, while 24% say they will likely spend between $500 and $5,000. ”. See our Automated Clearing House (ACH) support article if you are looking for ACH Return Codes. Calculating chargeback fees, lost merchandise, and other drains on revenue, the average chargeback will cost merchants $3. 1: goods not received. 1 – Merchandise/Services Not Received; Mastercard Reason Code 4853 – Goods or Services Not as Described or Defective;. Visa uses chargeback reason code 75 to designate chargebacks caused by non-recognition of a credit card transaction by the cardholder. Depending on the reason code, supporting documentation may include: Copies of the order confirmation, invoice, or receipt; Proof of. Often, this is the result of one of the. Cost. 2. The ECI value tells you what to do next in a 3DS transaction — proceed, reject the purchase, or try again. However, just because a chargeback is coded with a fraud or no authorization reason code does not mean true fraud has. Field name: reasonCode. CNP transactions are incredibly varied; with customers purchasing. Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. For example, 'R04' indicates that an invalid account number was provided. In simple terms, a payment dispute is simply a disagreement between a cardholder and a merchant about a charge. 4853 – Cardholder Dispute – Goods or Services Not Provided. A new update to Visa’s Chargeback reason code 83 adds more options for online sellers to dispute said related chargebacks, and help reduce friendly fraud. For example, 'R04' indicates that an invalid account number was provided. This can be a little confusing; Visa uses the term “dispute” in place of the term “chargeback. The cashier processes the transaction but, forgets to take her signatures or imprint on the receipt. Chargeback Reason Codes Retrieval Reason Codes 78 Int'l only Service Violation Code Discover 4541 AP 4586 AW 4755 RG 4553 RM 8002 RN2 Altered Amount Non-Receipt of Goods or Services0Cardholder Disputes Quality of Goods or Services MasterCard;45 Days from the central processing date of the transaction120 Days from the central processing. Merchants can find a. & xquhdgdeoh 83& edu frgh rq yhqgru wlfnhw1 %honb&rpsoldqfh#ehon frp 0lvvlqj ru 8qdffhswdeoh +dqjhu 6l]hu1 %honb&rpsoldqfh#ehon frp 0lvvlqj 8qvfdqqdeoh *6 odeho ru plvvlqj lqirupdwlrq rq fduwrq odeho1 %honb&rpsoldqfh#ehon frp 8quhdgdeoh *6 odeho rq fduwrq1 %honb&rpsoldqfh#ehon frp & 1r uhwdlo rq 83& wlfnhw 1 %honb&rpsoldqfh#ehon frp Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. Visa categorizes these types of disputes as “first-party misuse” under their reason code 10. For more information on these and other updates, check out our complete chargeback reason. There are over 80 unique return codes, each representing a different return type. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Visa Chargeback reason code 83 is used when there is a complaint from cardholder that he or she neither participated in transaction nor… 3 min read · Nov 23, 2017 Chargeback ExpertzThe chargeback reason codes below explain why this happened. io This is exactly the case with Reason Code 83, which is used to designate chargebacks resulting from processing fraudulent card-absent transactions. Across open networks and include account numbers sent over email, instant messaging, text, or chat. Chargeback Reason Codes In 2016, Mastercard chargeback reason codes were condensed and consolidated, in a restructuring that resembled Visa Claims Resolution. With an eCommerce transaction, 3-D Secure technology works like an online PIN code. 7, "Compelling Evidence" Added Compelling Evidence policy that details incremental optional requirements that Merchants may provide to support Chargeback reversal requests. Your business may not have to handle all chargeback cases — the processor will provide automatic representation in some instances. Therefore, the issuer may submit a chargeback for a Payment Transaction using the message reason code 4842 before the 30-calendar day presentment time frame normally required for this message reason code. To take advantage of these new advice codes, merchants and their acquirers must learn to recognize the new data values and their meanings and use them as the. There are a number of chargeback reason codes that are dedicated specifically to transaction errors. Fraud. Chargeback reason codes used to categorize fraudulent chargebacks include American Express reason code 193, Visa reason code 83, MasterCard reason code 4863, and Discover reason code 6040. 5: Visa Fraud Monitoring Program. To take advantage of these new advice codes, merchants and their acquirers must learn to recognize the new data values and their meanings and use them. If you’re not, there’s a good chance you’re about to see a high volume of chargebacks with “fraud” reason codes come pouring in. 0: Updated report version from 1. , American Express, Discover, MasterCard, and Visa), there are 151 chargeback reason codes. Reason codes 30, 81, 83: For an e-commerce transaction, two or more of the following types of evidence including: purchaser’s IP address, device ID number and name, purchaser’s name and email address linked to the customer profile on record. A chargeback filed due to buyer’s remorse is a prime case of friendly fraud; a situation where a customer side-steps a return policy in order to gain an illegitimate refund. 1. This reason code indicates that the merchant processed a transaction without first obtaining a correct and valid authorization approval. These modifiers can range from where the transaction is processed to what kind of goods are purchased. 30. Mastercard Chargeback Reason Code 73: Duplicate Transaction. Discover Chargeback Reason Codes Explained. This liability shift essentially provides merchants. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how. And approval wasn’t obtained at the time of transaction. In both instances if the Merchant wishes to withdraw from an arbitration case, Visa will charge the amount of 500. 4 Fraud – Card-Absent Environment. Visa chargeback reason code 11. Follow the Rules. Visa reason code 83, and similar designations from other card brands, encompass most of the fraud e-retailers face. With the implementation of Visa Claims Resolution, reason code 98 eventually became obsolete. Responses to retrieval requests that are over 4 pages will. Does this mean I could never get my money back? The buyer paid me on Mar. 4859 Addendum, No-show, or ATM Dispute. underlying your chargeback. Reason codes for chargebacks are assigned by issuing banks at the time of their creation, depending on the nature of their occurrence. Values are: Blank: Use the receipt G/L date. M49 Vehicle Rental – Theft or Loss of Use. Most dispute reason codes that. 8. 3 is an updated version of legacy reason code 76, which was phased out under the Visa Claims Resolution initiative. Terms and conditions. . These reason codes are an important part. A recent survey reported that 83% of consumers intend to purchase a gift card this holiday season. Which is meant to know the reason for the dispute. You can learn more about each one by visiting the Mastercard Chargeback Guide. 7: Defective goods and. I don't know why he's firing chargeback. A customer payment dispute, more commonly called a “chargeback,” happens when a cardholder disputes (challenges) a payment card transaction and asks the card-issuing bank to reverse it. You’ll see that all chargebacks ultimately stem from one of three causes: merchant error, criminal fraud, or friendly fraud. Mastercard Chargeback Reason Code 70: Chip Liability Shift. ” This reason code means that the cardholder is claiming that they did not authorize or participate in a card-not-present. A dispute often has a reason code associated with it. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. Chargebacks were introduced as a form of consumer protection against. By taking the action advised by Mastercard’s logic, merchants and acquirers will be more likely to receive an authorization approval. 57 - Transaction Not Permitted to Cardholder. 3 falls under the “Authorization” category. Collect Compelling Evidence. Chargeback time limits vary widely depending on the issuing bank, and the chargeback code or reason. Betty's issuing bank assigned chargeback reason code 10. The price of Order Insight alerts varies, but is often $8-$10 per deflected chargeback. While the updates have been published, they do not go into effect until Oct. 10/23/14 Discover Retrieval Reason Codes — Removed Code 02. 1003 - Transaction Supporting Document (TSD) needed for cardholder’s personal records expense reporting. Visa chargeback reason code 75 is filed as an honest mistake. Merchants who believe they have received an invalid chargeback under reason code 13. 0 is to make the chargeback process more efficient, transparent, and fair. 83 - Fraud – Card-Absent Environment How to Respond Provide evidence showing that the cardholder name is included in the manifest for the departed flight and matches the. #4 step: The issuer assigns a chargeback reason code. 4863: Cardholder not recognized. 4853 – Cardholder Dispute – Credit Posted as a Purchase. It can range from 60 to 120 days from the billing date. 4 to this dispute, indicating the purchase was fraudulent in a card-not-present environment. Section5. Include any terms relevant to the transaction, including return, cancellation and. 9% with at least 100 total disputes. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. Another thing you should bear in mind is that the card brand involved in the dispute can also change the reason code to suit new developments. American Express is incentivized to keep their customers happy. Time limits vary by card network and reason code, though, so you should look into the specific terms tied to the reason code. Overall returns (all codes): 15%. 2 falls under the “Processing Errors” category. Not remembering the original purchase. Updated the following reason codes: Wrong Amount or Date Paid with Other Method: September 2015: 7. Batch chargeback process. 1 • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. Updated: Valid values updated. Also, just like American Express, Discover functions as both a card network and an. Despite being the smallest of the four major credit card companies, the list of Discover chargeback reason codes is extensive. A “No Authorization” code chargeback can also be the. 4846. This statement item can later be reversed, or made permanent, depending on the reason for the credit issuance. The network hasn't wholly disallowed some old codes. chargeback_settlement: The gross shows negative if the chargeback was resolved in the buyer's favor, and the funds return to the buyer. Chargeback reason codes. This could be due to a variety of reasons, such as technical issues, human error, or delays in shipping or receiving goods. Unauthorized returns (R05, R07, R10, R29, R51): 0. Chargeback representment succeeds when you can present your rebuttal concisely and substantiate. While there are reason codes related to processing errors that cause disputes, the majority of reason codes result from a cardholder disputing a charge. A chargeback filed under Visa reason code 83 is invalid in an e-commerce transaction. . Often, this is the result of one of the. 3 No Authorization. 6: Duplicate processing/Paid by other means. ; Resources. 36. 93:Mastercard issuers use merchant advice codes to respond to authorization requests, and as a communication tool with merchants regarding a cardholder's account. In these situations, a merchant’s billing descriptor is simply not recognized by the customer. Depending on the specific situation, Mastercard will match authorization response to one of the following merchant advice codes: Mastercard Response Code. Reason code 83 represents a chargeback categorized as Fraud - Card Not Present (CNP) Transaction. Specify the default reason code that you want the system to assign when you enter a chargeback amount. Febuary 2013: 7. Cardholder Disputes. 3. 1003 - Transaction Supporting Document (TSD) needed. It’s important that you include a copy of your customer terms and conditions in order to prove that the customer knew what to expect from the outset. Gift cards are one of the most popular holiday purchases and remain in demand year round. Before exercising a Chargeback right, the Issuer must attempt to honor the Transaction. Thus, the easiest way to prevent chargeback reason code 75 from being filed is. This scenario applies when the arbitration was raised by either the. This reason code indicates that the merchant processed a transaction using the wrong transaction code. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. In that way, winning one dispute may help prevent the next chargeback to come after it. Laundering: The merchant carried out transactions without a legitimate cardholder’s involvement. These chargeback reason codes are broken down into four categories: fraud, authorization, processing errors, and service disputes. ; Resources. Each code begins with 'R' followed by a two digit number. Below is a full list of reason codes that require compelling evidence: 37; 83; 1040; 1310; 7030; C08; F29; UA02; Empty reason codes; If a dispute has any other reason code, there are no specific evidence requirements, and the evidence does not need to be categorized. ”. The cardholder did not recognize the transaction on her statement or had her account taken by fraud. Payment Transaction Response Codes. 4853 – Cardholder Dispute – Goods or Services Not as Described or Defective. Now, compliance cases go through Visa Resolve Online (VROL). These codes are established by the payment brands to categorize the incoming dispute requests by reason. Retrieval Request/ Copy request Reason Codes. An. View the entire list or search for any chargeback reason code. Values are: Blank: Use the draft G/L date. Chargeback Reason Code. First Chargeback failed: Reason Code 4837 not allowed under “issuer auths, they own” chargeback rules: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized CAT transactions: 100001: 400: INVALID_REQUEST: First Chargeback failed: Reason Code 4863 not allowed for authorized face-to-face. 4853 – Cardholder Dispute – Credit Posted as a Purchase. Dispute Reason Code: A specific code associated with the reason given by the buyer for initiating the chargeback. 83: Card Absent Fraud:. If you choose to fight the chargeback, Amazon Pay will charge you a $20 Disputed Chargeback Fee. However, they’re more and more often used as a loophole to commit fraud. The agency must provide this documentation to Vantiv (via mail, fax, online/scanning) within 30 calendar days after the report date on the Visa/MasterCard. For a full list of the new Visa chargeback reason codes and their corresponding dispute categories, please visit the Moneris chargebacks page. 4 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. 4853 – Cardholder Dispute – Credit Not Processed. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. Once you know why a chargeback happened, you can start building a case to address the claims that were made. EMV Liability Shift Counterfeit Fraud. Try Shopify free for 3 days, no credit card required. 2: Canceled Recurring Transaction, and those disputes would still go through the normal chargeback process. AMERICAN EXPRESS; CODE: DESCRIPTION: A01: Charge Amount Exceeds Authorization Amount. Reason code 98 was a code used for pre-compliance chargebacks before the implementation of the Visa Dispute Resolution system. A smarter, simpler way to stop fraud. A card-not-present. As we touched on earlier, chargebacks can happen due to technical errors. Below is a simple set of instructions, based on different situations: If the transaction was verified using SCA ( 3D Secure ): provide this proof. In simple terms, an Electronic Commerce Indicator (ECI) is basically a 3-D Secure response code. Each bank card network has its owner list of reason codes banks must prefer from. All ACH return reason codes consist of the letter “R” followed by two. 83 (1) Fraud – Card. Reason Code 03. Mastercard created Mastercom to make the chargeback process run more smoothly and allow merchants to respond to certain inquiries, called retrieval requests, which precede. The separation of the Return ReasonOne catch is that CE3. Having a Lax Attitude Toward Industry Rules & Regulations. 3 is an updated version of legacy Visa reason code 72, which was phased out under the Visa Claims Resolution initiative. Some Mastercard reason codes (4808, 4870, and 4871) proceed directly to arbitration if the issuer does not accept the merchant's representment. This provided a number of insights into the typical. Reason. Chargebacks. The merchant did not receive any returned merchandise. Each chargeback has a chargeback reason code assigned to it, which is a two-digit number that corresponds to the reason the customer is disputing the charge. Card Type Reason Code Reason Text Chargeback Category Preventable Reversible VISA 30 Services Not Provided or Merchandise Not. 3 falls under the “Consumer Disputes” category. 4: Other Fraud–Card-Absent Environment. For best results, your chargeback win rate should be as close to 100% as possible. If your issuing bank agrees with your claim, they will contact the merchant’s bank to notify them of the disputed charge. So the company has more incentive to side with customer during cardholder disputes. The transaction amount and authorization number (ARN. Reason Code 53 chargeback can be re-presented in one of the following circumstances: chargeback is invalid or a credit was processed. CHARGEBACK REASON CODES THE ENCYCLOPEDIA recover lost r e c o v eyour r yo u r l orevenue st revenue Table of. Most acquiring banks put a timeframe on when customers can initiate a chargeback for a purchase. It’s important to look up the code to understand why a transaction, good, or service was disputed in order to properly present a solid case to win the chargeback. 4 Other Fraud – Card Absent Environment 93(1) 10. Chargeback reason code 10. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim. Under reason code 85, the minimum transaction amount required to initiate chargeback should be at least $25. This gives them more of an incentive to keep their customers happy, which means they usually side with cardholders during a dispute. Feel free to submit topic suggestions, questions or requests for advice to:. Chargeback Reason Codes List for Mastercard Chargeback Code Chargeback Reason 4801 Requested Transaction Data Not Received 4802 Requested / Required Information Illegible or Missing 4807 Warning Bulletin File 4808 Requested / Required Authorisation Not Obtained 4812 Account Number Not on File 4831 Transaction Amount Differs 4834 Duplicate. 2. After the withdrawal, the bank will create a chargeback reason code, meaning why they made the chargeback, and electronically transfer all the. Reason Code North-America: Canada and United States of America; Reason Code: All other countries; Fraud. 4 spec (Section 8. 4846. May 2011: 5. the reason code doesn’t. Auto Write Off. Retry after 10 days. Slideshow 7717267 by chargebackprevention81 – Fraud – Card Present Environment 83 – Fraud – Card Not Present Environment Applicable Chargeback Reason Codes Effective for Representments Processed On or After 17 October 2015 30, 53, 81, 83 Evidence, such as photographs or emails, to prove a link between the person receiving theThere is a USD 25 limit for the First Chargeback (Reason Code 22). Protected Chargeback Reason Codes: Visa USA: Credit & Debit Cards – Authentication & Attempts. Expert Help. Retry after 8 days. A provisional credit is a temporary credit issued by a bank to an account holder. 54 - Expired Card. Encrypt transmission of cardholder data. Built with a single, intuitive console, Sift’s end-to-end solution eliminates the need for disconnected tools, single-purpose software, and incomplete insights that drain operational resources. Below you will find the reason codes for the dispute events Chargeback, Request for Information (RFI), and Notification of Fraud (NOF). The immediate cause for this type of chargeback can be one of the following: The merchant processed a transaction from a person who was fraudulently using the card. So, if a customer files an Amex chargeback, the company has good reason to side with their customer over the merchant. 4: . 4: “Other Fraud. 3 falls under the “Authorization” category. If the order was genuinely not as described, then the cardholder has a case. You’ll put that reason code, the transaction amount and authorization number, and state that the. 1001 - Cardholder does not recognize the transaction. The aim of CE 3. 2. Merchants can find a. Additionally, one clearing transaction. Thanks for following the Chargeback Gurus blog. In general, the unauthorized use of a parent’s credit card by a child is not considered a legitimate reason for filing a chargeback, since it is not criminal fraud, and the customer received the purchased goods or services. CNP transactions are incredibly varied; with customers . People request chargebacks for all kinds of reasons—some sinister (like friendly fraud), some because the item they bought never arrived. The customer is claiming that this purchase was not authorized. Chargeback Reason Code 75. It is subject to change and may not include every currently known dispute reason code. Going back to our Reason Code C08 response, there are two modifiers that affect the evidence presented. Visa Chargeback Reason Code 10. MasterCard International: Credit & Debit Authentication. Step 1: The cardholder disputes a charge. 3 is part of an updated and expanded revision of the legacy codes that indicated fraud, codes which were phased out under the Visa Claims Resolution initiative. ; Help Center Find answers to common questions about Midigator’s technology,. In short: yes. A new 4 byte reason code will be used moving forward. Also, just like American Express, Discover functions as both a card network and an. Be sure you understand the cardholder’s claim. Search reason codes 2. Clearing. Chargeback . But friendly fraud is much more ambiguous. A transaction modifier (or modifier) represents specific circumstances associated with a card sale that change what compelling evidence is required to overturn the chargeback. The cardholder may be the customer or the someone who lent their card to a friend or relative. 10. MasterCard does not have an equivalent reason code. It should ultimately help prevent fraud and unwarranted chargebacks, specifically applying to disputes marked with a Visa reason code 10. 4 applies to eCommerce, whereas code 10. 4853 Cardholder Dispute. There are two parts to this. 100187 and ANSI X9. If you leave this processing. See full list on chargeflow. Choose the representment amount. This alphanumeric code corresponds with the specific reason behind the chargeback, such as card-not-present fraud, incorrect currency, misrepresentation, or any other chargeback. Depending on the code, that could mean gathering proof of authorization, signed receipts, proof of delivery, email correspondence and/or the cardholder’s IP address with transaction date and time for online purchases. As a merchant, your focus should be on finding and retaining customers--not chargebacks. 08. For example, Visa reason code 83 is one of the reason codes with several modifiers with which it’s associated. Responding to Mastercard Reason Code 4853 Chargebacks. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. Reason Code. ECM monitors first presentment chargebacks regardless of reason code or transaction type. If the cardholder is using the chargeback process incorrectly — a practice commonly referred to as “friendly” fraud — the information provided to the bank. Visa Chargeback Reason Code 83. This may include information about the. Survey data from the 2019 Chargeback Field Report found that 82% of merchants surveyed believed that the Visa Claims Resolution process had “little to no impact on chargeback management. The chargeback can be for the total transaction amount or a lesser amount. Choosing what compelling evidence to submit. Some payment service providers like PayPal and Stripe have their own reason codes as well. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration and535 Other Coverage Code Value Not Supported 0643 INVALID OTHER COVERAGE CODE 535 Other Coverage Code Value not supported 2802 CLIENT PLAN REQUIRED CO-PAY ONLY BILLING FOR MDD 536 Other Payer-Patient Responsibility Amount Qualifier Value Not Supported 0883 PATIENT RESPONSIBILITY AMOUNT QUALIFIER NOT. Specify the invoice date and net due date that you want the system to assign to chargebacks. 3. Authorization errors generate due to a lack of authorization or a non-compliance issue. 4853. Chapter 6 Pre-Arbitration and Arbitration Case Filing-For Chargebacks Initiated On or After 17 July 2020 > Time Frames and Requirements > Dual Message System Pre-Arbitration andReceive the Chargeback. Versions Affected: v5, v6. Visa chargeback reason code 12. Updated these MasterCard Chargeback Codes: 08, 12, 55. The charge you submitted did not receive a valid authorization approval code for the amount of the charge. but most banks allow cardholders up to 120 days to file a chargeback depending on the reason code. Each card. Cardholder Dispute — Not Elsewhere Classified (U. This reason code indicates the cardholder had reason to believe they were going to receive a refund, but no credit to their account has been processed. When the transaction is fraudulent and the cardholder did not authorize the transaction this code is validated. Administrative returns (R02, R03, R04): 3%. Chargeback reason codes. Reason Code 82: Duplicate Processing Reason Code 83: Fraud-Card-Absent Enviroment Reason Code 85: Credit Not Processed Reason Code 83: Paid by Other. These codes explain the reason why the chargeback was filed, and the reason the chargeback was approved. This can be the result of innocent merchant error, or intentional merchant fraud. About American Express chargeback reason codes. 99. What stands out about the Discover reason codes list, though, is most of the codes are alphabetically-noted rather than numeric. 4841. Learn more about Visa reason codes. The cardholder withdrew their chargeback: Provide a letter or email from the cardholder that states. Key-in your chargeback reason code and get a detailed explanation of what it means, how to fight the chargeback, and how to prevent disputes in the future. Reason Code 12. For each reason code, a definition is Chargeback reason codes identify the general reason behind a chargeback. For each reason code, a definition is provided along with the merchant’s actions—or failure to act—that may have caused the chargeback, and. Field name: arbitrationExplanation. What is Visa chargeback reason code 10. Analyze your chargeback data. 1: Use the corresponding dates from the invoice. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Apparel retailers and suppliers must proactively address chargeback issues. Paymentology will submit the chargeback using the appropriate chargeback reason code. Cardholder Dispute — Defective Merchandise / Not as Described. S. These modifiers can range from where the transaction is processed to what kind of goods are purchased. Discover - UA02 Fraud – Card Not Present Transaction. 3 Other Fraud – Card Present Environment 83(1) 10. Here is an overview of how the general chargeback process works with most major processors (we’ll get into how Square does it down below) Step 1: A purchase occurs. Chargeback Reason Codes will help you better understand why you are involved in a Chargeback Dispute and what you need to do to prevent future Chargebacks. Write customer-friendly policies. Card networks send these codes to merchants to indicate why a chargeback has been filed. Whenever a chargeback is initiated, a code is passed through from the issuing bank that gives a reason for the dispute. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present.